Do you know in R12, there is Customer-centric functionality called "Customer Acceptance".This is Integrated with Workflow in OM and AR and utilizes Order Information Portal (OIP) .

Company using these feature can see major benifits as:

This is Customer-focused enhancement which improve Customer Satisfaction

Self-service acceptance entry by Customer

Delayed invoicing can reduce transaction burden of processing RMA

What is Customer Acceptance ?

Enables organization to defer invoicing and/or revenue recognition for the shipped goods till the end customer receives the shipment and accepts the material

Additional step called ¡§customer acceptance has been introduced in order fulfillment flow in R12, where customer accepts the goods either before or after billing happens

Customer Acceptance rules are created in the Receivables Revenue Management module and they are executed and validated within Order Management

Types of Customer Acceptance Rules

Customer Acceptance can be performed at the following milestones:

Prior to Invoicing - Pre Billing

Post Invoicing - Post Billing

Oracle supports both Customer Acceptance rules in both Implicit and Explicit mode. Details are herewith:

Pre-Billing Acceptance:

Invoice is generated after the acceptance criterion is met; either a certain period of time has elapsed since shipment (Implicit Acceptance) or a user records acceptance using Order Information portal (Explicit Acceptance). Events are most likly to be:

Invoices will only be interfaced to Oracle Receivables after the acceptance is recorded

Defers both Invoicing & Revenue Recognition

Can be Implicit or Explicit ( refer details next section)

Sales Order Line Workflow process is held at Invoice Interface eligible – Pending Customer Acceptance

Remember this "Line closes and invoice-interfaces after acceptance "

2. Post-billing Acceptance:

Invoice is generated upon delivery of goods/ services but the revenue recognition is deferred until the customer accepts the products/ services. Acceptance may be recorded implicitly / explicitly at the line level.Events are most likly to be:

Invoices are created but revenue will be recognized after aceptance is recorded

Defers only the Revenue Recognition

Can be Implicit or Explicit

Sales Order Line Workflow process is held at Close Line Eligible – Pending Customer Acceptance

Remember this "Revenue recognition occurs after acceptance"

Two Basic Types of Acceptance

Oracle has broadly classified the acceptance in two categories:

1. Explicit Acceptance

Requires an actual acceptance from or on behalf of the Customer.Acceptance is recorded using the Order Information Portal

Customers or their representative can perform the acceptance by

Logging into the Self-service Order Information portal

Through import API

Recording the acceptance in sales order form

Acceptance can be recorded Manually or Programmatically

2. Implicit Acceptance:

In this case, acceptance will auto-process after specific interval beyond specified transaction.

Acceptance is recorded systemically after a certain period of time has elapsed since the shipment. This period of time is setup in the Receivables module at the time of defining the deferral reason.

In the Receivables module, The Expiration Period (Expire Days) is pre defined for the Deferral Reasons

Implicit Acceptance Request Set is used to record implicit acceptance

Can only be recorded Programmatically

This make total 4 Acceptance Combinations as:

Pre-Billing Explicit

Pre-Billing Implicit

Post-Billing Explicit

Post-Billing Implicit

Basic Set Up

In order to use this , Important setups required for Customer Acceptance feature along with Revenue Recognition as follows:

Setting Up Oracle Order Management System Parameters

Adding Specific Functions to Order Management User Menu

Create Revenue Contingencies & Assignment Rules

Create Folder for viewing Customer Acceptance details on Sales Order Line

A note on Implicit Acceptance Request Set

The Implicit Acceptance Request Set, a part of OM’s standard concurrent programs is launched upon expiration of ‘Acceptance Days’ and acceptance is recorded.